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Technology Stocks : Creative Labs (CREAF)
CREAF 0.448-12.1%Dec 17 12:59 PM EST

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To: Dennis G. who wrote (12982)12/3/1998 1:29:00 PM
From: Fred Fahmy  Read Replies (3) of 13925
 
<The question is, is there any reason why anyone else should buy it at that level?>

I don't know why anyone should place a greater value on the stock than Sim. Apparently unlike many of us, Sim does not see CREAF as a screaming buy at 17. Who are individual investors to argue with him?? It's getting harder and harder to believe that they are having a good quarter (relative to WS estimates) given CREAF's reluctance to buy in a huge way. My guess is that the quarter does not have a lot of upside or downside and that they are on track to simply meet estimates. If they knew they had a big upside quarter in the making, they would definitely be buying more....who the hell wouldn't?? This would also give others confidence that a good quarter is in the making.

I am beginning to come to the same conclusion that Mfler (on Yahoo has reached) and been criticized for by the rah-rah boys on Yahoo. Namely, that the only way investors will ever realize a fair price for their shares is if Sim sells the company. I find it very hard to believe that they couldn't easily sell the company for $30. As long as WS continues to have such disdain and contempt for CREAF and their management, it will never realize full potential regardless of its solid fundamentals. The NASDAQ is at an all time high, many tech stocks (most with less favorable fundamentals) are reaching new highs every week, and yet CREAF remains almost 40% below its 52 week high. It most probably will end the year down and it is way off of its all time high.

I have no doubts that Sim has been great for restoring the company from an operational/product viewpoint. His technical ability is not in question. I also have no doubt that he is flying by the seat of his pants when it comes to courting WS and getting respect for this stock. He has in the past and continues now to mismanage WS expectations.

Oh well, at least we are still in double digits <gg>.

FF
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